Should Salaried Professionals Invest in Low-risk or High-risk Investment Options?

You are a salaried worker and you receive a fixed monthly salary. It is important to use this income wisely. The best way to grow it is by investing according your financial goals. Research your options and consider investing in different avenues depending on how much time you have available as well as the risk that you are willing to take.

You should diversify your investments portfolio by investing in both high- and low-risk investments. This will ensure that you have the best possible returns while also ensuring safety. A good investment option is to invest money for a specific time period. Fixed deposits are not subject to market fluctuations, so they preserve your capital. Fixed Deposits are offered by the top NBFCs and offer attractive interest rates, stability, and safety.

Keep this in mind as you consider high- and low risk investment options and the potential returns.

Fixed deposits

FDs are low-risk, offer substantial returns, and protect your capital from losing its value. If you are a risk-averse investor, these benefits make them ideal for you. You can enjoy stability, high interest rates and safety by investing in deposits at top companies such as Bajaj Finance

NBFCs offer high interest rates of up to 8.75% if they have a cumulative fixed deposit that lasts at least 36 months and 9.10% if it is a cumulative one that lasts for the same period as a senior citizen. To determine the exact returns and to see if it matches your short-term needs, you can use a calculator. You can increase your gains by laddering deposits.

Public Provident Fund

PPF is a government-sponsored savings scheme that carries low risk. Most salaried workers contribute by default to the Employees’ Provident Fund. If your employer is not covered by the governing act, you may not be eligible for EPF. You can still invest in PPF in these cases.

If you wish to increase your EPF contribution, you can also invest in PPF. The annual investment can be as low as Rs.500 or as high at Rs.1.5 lakh and you will earn 8% interest. This long-term investment offers tax benefits and is good for 15 years.


While equity is high-risk because it is directly tied to the performance of the market, it also offers attractive returns that can beat inflation. You can also earn substantial amounts if you hold on to your equity investments for a long time.

You can make a lot of money investing in equities by yourself, but it takes knowledge and skills. It is wise to only invest in equities after you have studied the economic factors and companies that impact the market.

Equity Funds

It is not recommended that you invest in equities, particularly if your knowledge and skills are limited. Equity mutual funds are a safer option to invest in equity. Professional fund managers manage mutual funds and identify the best companies to invest in. Equity is the underlying security.

You can reduce the risk by letting them decide which fund you want to invest in. They manage your investment according to market fluctuations.

Unit Linked Insurance Plans (ULIPs)

ULIP is a combination of investments and life insurance. Your premium is split into two parts. One portion goes towards insurance and the other towards equity or debt investments. This depends on your investment goals and risk profile. You can earn moderate to high returns and take on moderate risk depending on the underlying asset.

Once you have an understanding of the risks and potential returns from various investment options, you can curate your investment mix to meet your short- and longer-term financial goals.